In a new interview published by Mother Jones, Bankman-Fried claimed that his decision to hand over FTX on November 11, 2022, prevented him from pursuing a last-minute investment that could have potentially saved the exchange.
“The single biggest mistake I made by far was handing the company over,” he said. Moments after signing the papers, Bankman-Fried received a call about a possible external investment deal, but it was too late to reverse his decision.
Soon after taking control, John J. Ray III — a restructuring expert appointed as the new FTX CEO — filed for Chapter 11 bankruptcy protection and hired the law firm Sullivan & Cromwell (S&C) to manage the legal process.
From $32 Billion Empire to Collapse
Once valued at $32 billion, FTX collapsed in November 2022 after revelations that customer funds were being misused to cover losses at its sister trading firm, Alameda Research. The scandal wiped out $8.9 billion in investor funds and led to one of the largest fraud cases in crypto history.
Bankman-Fried was arrested in the Bahamas on December 12, 2022, and extradited to the United States the following month. He was later convicted on seven felony charges and sentenced to 25 years in federal prison in 2024.
According to emails revealed in court filings, Sullivan & Cromwell attorneys had suggested Ray’s appointment two days before the bankruptcy. An S&C lawyer, Andrew Dietderich, reportedly emailed SBF on November 9, 2022, proposing to hire Ray as a chief restructuring officer “in a possible Chapter 11” scenario.
In February 2024, a group of FTX creditors sued S&C, alleging the firm had aided and benefited from FTX’s fraud. However, the lawsuit was voluntarily dismissed in October 2024.
By June 2024, Sullivan & Cromwell had earned over $171.8 million in legal fees from the FTX bankruptcy case, according to Reuters.
FTX Creditors Await Remaining $8.7 Billion
Nearly three years after the collapse, FTX has made significant progress in repaying customers. The exchange began reimbursements in early 2024, with payouts of $1.2 billion in February, $5 billion in May, and $1.6 billion in September, totaling $7.8 billion so far.
The FTX estate now holds about $16.5 billion in recovered assets, meaning creditors are set to receive up to 118% of their original balances as of November 2022.
However, $8.7 billion in repayments are still pending as the bankruptcy process continues.
The downfall of FTX sent shockwaves through the cryptocurrency industry, triggering a chain reaction of bankruptcies and ushering in one of the longest bear markets in recent years. After the exchange’s collapse, Bitcoin plunged to nearly $16,000, marking one of its lowest points in 2022.
Today, as Bitcoin trades above $124,000, the industry continues to recover from the damage left by FTX — a collapse still viewed as the defining scandal of the crypto era.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.
We use cookies to personalize content and ads, provide social media features, and analyze our traffic. In accordance with GDPR/AVG and EU cookie regulations, data is processed only with your consent. We may share information about your use of our website with our social media, advertising, and analytics partners, and you can manage or withdraw your consent at any time. View more
Cookies settings
Accept
Privacy & Cookie policy
Privacy & Cookies policy
Cookies list
Cookie name
Active
Privacy Policy
At BitxJournal.com, we respect your privacy and are committed to protecting your personal data. This Privacy Policy explains how we collect, process, store, and protect personal information in accordance with the General Data Protection Regulation (GDPR) and AVG (EU privacy legislation).
1. Data Controller
BitxJournal.com acts as the data controller for all personal data processed through this website.
2. Personal Data We Collect
We may collect and process the following categories of data:
Personal Data
Name and email address (when you subscribe to newsletters or contact us)
Technical & Usage Data
IP address, browser type, operating system
Device information
Pages visited, referral sources, and interaction data
This data is collected via cookies, log files, and analytics technologies.
3. Legal Basis for Processing
We process personal data only when a lawful basis exists, including:
Consent – when you explicitly agree (e.g., cookies, newsletter sign-up)
Legitimate interest – to operate, secure, and improve our website
Legal obligation – when required by applicable laws
You may withdraw your consent at any time.
4. Purpose of Data Processing
Your data is processed for the following purposes:
Operating and maintaining the website
Improving content, usability, and performance
Sending newsletters or updates (only with consent)
Analyzing traffic and user behavior
Responding to inquiries or support requests
5. Cookies & Consent Management
We use cookies and similar technologies in compliance with EU Cookie Law.
Non-essential cookies are placed only after explicit user consent
Users may accept, reject, or manage cookie preferences at any time
Consent can be withdrawn without affecting prior lawful processing
Detailed cookie information is available in our Cookie Settings panel.
6. Third-Party Data Processing
We may share limited data with trusted third-party service providers, including:
Analytics providers (e.g., Google Analytics)
Advertising partners (for personalized or non-personalized ads)
These third parties act as data processors and process data only under contractual obligations compliant with GDPR/AVG.
7. International Data Transfers
Where data is transferred outside the European Economic Area (EEA), we ensure appropriate safeguards are in place, such as Standard Contractual Clauses (SCCs) or equivalent legal mechanisms.
8. Data Retention
We retain personal data only for as long as necessary to fulfill the purposes outlined in this policy or as required by law.
9. Data Security
We implement appropriate technical and organizational security measures to protect personal data against unauthorized access, alteration, disclosure, or destruction.
10. Your GDPR Rights
Under GDPR/AVG, you have the right to:
Access your personal data
Rectify inaccurate or incomplete data
Request data erasure (“right to be forgotten”)
Restrict or object to processing
Data portability
Withdraw consent at any time
Lodge a complaint with a supervisory authority
11. Changes to This Privacy Policy
We reserve the right to update this Privacy Policy at any time. Any changes will be posted on this page with a revised effective date.
12. Contact Information
For privacy-related inquiries or GDPR requests, contact:
